Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM), The cost data follow: General-Purpose Equipment (GPE) Annual contracted units www. 200.000 Annual fixed cost $100,000 Per unit variable cost $15.00 Flexible Manufacturing System (FMS) 200,000 $200,000 $14.00 Dedicated Machine (DM) 200,000 $500,000 $13.00 the contract for the second and third years is pending, for demand below 100,000 units, option is the best alternative for Luis. CM blum V ar jear extend Click to select your answer(s) and then click Check Answer www. Final Check Proc 1 remaining Aug 12 MacBook Pro